Hi
Under IFRS 9, when there is change in business model, the financial asset should be reclassified. For instance, given that in the previous business model, the asset was at FVTPL and now with the new business model, the asset should be measured at amortised cost. But can we still use the option to designate the financial asset at FVTPL (IFRS 9 4.1.5) given that its corresponding financial liability is measured at FVTPL. I am not sure whether it is possible when there is change in business model or it is applicable only at initial recognition as mentioned in section 4.1.5. Can you please help.
Thanks
Lindsay
IFRS 9 - change in business model reclassification
Re: IFRS 9 - change in business model reclassification
well, I'm afraid you can't use this option now
the classification works like this:
do I use the FV option at initial recognition?
if yes - FV
if no - I need to look at business model
you didn't choose to use the option at initial recognition, so there's no coming back
the classification works like this:
do I use the FV option at initial recognition?
if yes - FV
if no - I need to look at business model
you didn't choose to use the option at initial recognition, so there's no coming back
Re: IFRS 9 - change in business model reclassification
Thank you. Very helpful.